Moody's rates GS Caltex notes Baa1

Moody's Investors Service said it assigned a Baa1 rating to the proposed senior unsecured $500 million notes to be issued by GS Caltex Corp.

The outlook is stable.

The rating reflects the company's strong position as the second largest player in Korea's refining and marketing sector, Moody's said and its strong association with Chevron Corp (Aa2), its 50% shareholder.

On the other hand, the rating considers the concentrated nature of the company's operations, which heightens operating risk and the execution risk related to its business diversification strategy, along with an active capital spending program, the agency added.

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